Crude Dumps, Pumps, & Slumps As Unexpected Inventory Build Offsets Production Cut

Following API’s smaller than expected draw overnight, DOE data showed an unexpedted 1.31m barrel build (3.5m draw expectations). This was offset by considerably bigger than expected draws in Gasoline and Distillates and Cushing oinventories rose less than expected. Crude production also fell once again, to its lowest since Sept 2014. The initial kneejerk was a mini-flash-crash in crude prices.. but that was rapidly bid back to unch…

API:

Crude -1.1m (-3.5mm exp, last week -3.4mm)

Cushing +508k (+1.1m exp)

Gasoline -1.9mm (-1m exp)

Distillates -2m (-1m exp)

DOE

Crude +1.31m (-3.5mm exp, last week -3.4mm)

Cushing +460k (+1.1m exp)

Gasoline -2.5mm (-1m exp)

Distillates -3.17m (-1m exp)

Some other statistics:

Total production: 8.8mm

Crude imports: 7.8mm

Total crude supply: 16.1mm

Production dropped for the 17th week in a row to its lowest since Sept 2014…

Total stocks rose 1.3MM to 541MM, up 59 million Y/Y.

Some other interesting obserations: despite the Canadian wildfires, it appears that the DOE goalseeked total imports at 7.8mm barrels, virtually unchanged from last week, suggesting there has been no disruption.